When does the loan expire?

Sometimes it happens, and quite often, that we get caught up in debt. We make one commitment to pay off others. Then another and subsequent ones. And it is not known when we get in trouble. There is a growing problem with their repayment. Preferably in ostrich, we would hide our head in the sand and wait this difficult time. Just what will it do? Debts will not pay off themselves and problems will not be solved by themselves. They will wait for us until we emerge from the sand and attack with double force.

We’d love to get rid of them for good. This is not impossible, but we would have to have a lot of luck. It is worth knowing that this type of debts, i.e. loans and credits expire after three years. Many desperate debtors certainly count on it. However, they should also be aware of the fact that lenders will do a lot for a loan so that this does not happen.


When is the debt time-barred?

When is the debt time-barred?

As a rule, debt, or rather on the basis of legal provisions, expires after three years. However, this period may be extended to 10 years. The limitation period may be interrupted for various reasons and accrued from the beginning. You have to know that, and indeed, debts after three years expire, but they must be three years in complete inaction of creditors. So the creditor just has to forget about us for three years. He should not send us any reminders, reminders or requests for payment during this time.

Those who deal with creditors know well that this is unlikely. It is difficult to clearly indicate what would have to happen for the lender to forget about us. Unless our folder falls behind the wardrobe, – although in the era of computerization, even if the folder is behind the wardrobe, the computer system will not forget about us.

Even if such a situation took place, we should remember that information about the debt held and its limitation will be visible in the debtors’ registers – in the Economic Information Bureau or the Credit Information Bureau. If there is a situation in which our debt expires, we can refuse to pay this obligation without any consequences. And if we feel such a desire and want to behave honorably, we can repay the liability in the amount in which it is, or attempt to negotiate with the creditor.


When can we start counting the limitation period?

When can we start counting the limitation period?

This period begins when it becomes due. Neither party to such a contract may change these arrangements and set its own limitation period. This period is regulated only by the Civil Code. According to him, all obligations are barred, but there are exceptions to each rule. From this one too.

We have to be careful what we are counting on, because, for example, loans or credits secured by a mortgage, or paid against a property, will not be time-barred. In this case, the only thing that can be barred is only interest on the mortgage. Among other things, that’s why creditors prefer this type of collateral. It is worth remembering that this type of debt does not expire. There is nothing to count on.


In what cases and what is the limitation period?

money problem

It is known that for some loans this period is 3 years, in others 10 and in others they do not expire at all. And so in the case of loan companies or banks, the limitation period is 3 years. In the case of private loans, the limitation period for claims is 10 years. It can happen that the limitation period for a private loan will be extended to 10 years.


In what situations does this happen?

money loan

A 10-year limitation period will apply to us if our loan is enforced under a court order, payment order, or arbitration award. In fact, it looks a bit different and most loans expire after five years. However, we often misinterpret the provisions regarding the limitation period for obligations.

Often it seems to us that this is a clearly defined, one term that we can easily set ourselves and we stick to it. Unfortunately, this period may be extended in various situations. We should also remember that the limitation period runs when the creditor does not take any steps against us to recover his money.


So how is it with this limitation?

credit problem

The Civil Code clearly and clearly defines the situations when the limitation period will be interrupted and in which case it starts running from the beginning. The situation in which the limitation period is interrupted is when our lender submits to the court an application asking us to reach a settlement, or possibly to grant an enforcement clause. The limitation period also suspends the application to the court bailiff to initiate enforcement proceedings.

The same applies to bringing a civil action against a debtor in a district court. The running of the deadline will also suspend the start of mediation between the parties and any other activity performed by the debtor, which will indicate that he has acknowledged his debt, for example, settlement of the outstanding installment, or signing an appropriate statement. At the time when our debt is being dealt with by a bailiff, civil court or arbitration court, the limitation period is suspended for as long as these institutions will deal with it. And then it will start again.

Let’s remember, however, that even if we somehow manage to succeed and our debt expires, then our credit history will not improve. At the moment when the BIK receives information about the arrears, the debtor has been properly notified about it, for the next 5 years BIK may process the debtor’s data. It is also important that the mere fact of limitation is not a basis for deleting information on debt.

No Comments

Leave a Comment